Another Day of Rest
More
unwinding of the dramatic 28% explosion
in last week’s Naz.
On the surface, that meant a trivial
setback in the index, along with a higher high and higher low.
This while volume slowed 4% from
Wednesday.
Beneath the surface, most glamours
located the winner’s circle, and by a 2-to-1 margin.
Turnover faded in the majority of
vogue names, though of the few that saw elevated trade, most were risers.
In other words, very little
distribution in the issues that are most important in the eyes of the
intermediate-term trader.
When a market comes down as far as the
Naz had from March 10 to May 24 (41%), it’s not realistic to expect any kind of
turbocharged run back to the old highs.
If this was an 8%-12%
intermediate-term correction, the situation might be a bit different.
The point here is to expect plenty of
backing and filling among stocks that might be considered the new leaders, more
than you saw in the October-December and February-March periods.
What’s important is buying these
shares at points you believe will offer support in the event of a general market
pullback.
If you feel comfortable about buying
some of these now, do so.
If not, and if this advance proves
legitimate, plenty of opportunities should present themselves in the weeks to
come as more stocks scale the right side of their cups, lessening the amount of
their resistance in the process.
Among the names, Analog
(
ADI |
Quote |
Chart |
News |
PowerRating)
hurdled its 11-week, w-shaped cup on volume close to 50% above average.
Xilinx
(
XLNX |
Quote |
Chart |
News |
PowerRating), a chip with a
similar-looking pattern to Analog, remains in a handle.
Looking at the seven early breakouts
of last week: SDL
(
SDLI |
Quote |
Chart |
News |
PowerRating) lost 3% on easing volume.
Sanmina
(
SANM |
Quote |
Chart |
News |
PowerRating), off 5%, lost the
most of the seven, but turnover was well below average and less than that of
Wednesday.
As for the others, Newport
(
NEWP |
Quote |
Chart |
News |
PowerRating),
Micron
(
MU |
Quote |
Chart |
News |
PowerRating), Techne
(
TECH |
Quote |
Chart |
News |
PowerRating), Keithley
(
KEI |
Quote |
Chart |
News |
PowerRating) and Linear
(
LLTC |
Quote |
Chart |
News |
PowerRating)
gained.
Silicon Storage
(
SSTI |
Quote |
Chart |
News |
PowerRating) briefly
broke out of its four-day handle, then closed down on lighter flow.
Vertex
(
VRTX |
Quote |
Chart |
News |
PowerRating), one of a number of
stocks in the midst of a weeklong pullback, remains one of the most attractive
bios.
RF Micro
(
RFMD |
Quote |
Chart |
News |
PowerRating) is another of the
better-acting electronics-relateds.
A big leader of late-’99 and
early-’00, Redback
(
RBAK |
Quote |
Chart |
News |
PowerRating), is experiencing a constructive volume dry-up as
it forms a mid-level shelf.
Nvidia
(
NVDA |
Quote |
Chart |
News |
PowerRating) saw buyers step up
as it drew down to the top of support.
PMC-Sierra
(
PMCS |
Quote |
Chart |
News |
PowerRating), above its
midpoint, stabilized after a pair of distribution days.
Polycom
(
PLCM |
Quote |
Chart |
News |
PowerRating) etched an inside
day for the second straight session on a third consecutive outing of light
activity.
Just below its midpoint, Metromedia
Fiber
(
MFNX |
Quote |
Chart |
News |
PowerRating) is pulling back on dwindling trade.